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CAPE TOWN – Finance ministers and central bank governors from the world’s largest economies will gather in Kleinmond in the southern Cape this weekend for a meeting of the so-called Group of 20 (G-20) countries. Italy is represented by minister Padoa Schioppa and Bank of Italy’s Governor Draghi.
It is the first time the event -- described by Finance Minister Trevor Manuel as probably the most significant gathering of economic policy makers ever seen in South Africa -- has been held on African soil.
The G-20 comprises Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom and the United States of America. The European Union is also a member.
Together, these countries represent about two-thirds of the world’s population, and contribute 90 percent of its gross domestic product.
The group defines itself as “an informal forum that promotes open and constructive discussion between industrial and emerging-market countries on key issues related to global economic activity”.
Aiming to develop policies that promote “high and sustainable growth” of the world economy, the G-20 meets once a year.
Last year, it met in Australia, and next year its members will gather in Brazil.
South Africa is chair of the 2007 event, and -- together with last and next year’s hosts -- part of the G-20 “troika” set up to promote continuity from meeting to meeting.
The theme for the Kleinmond forum is “Sharing -- Influence, Responsibility, Knowledge”.
According to a 2007 Work Programme, issued by the SA Reserve Bank and National Treasury, the two-day meeting will focus, among other things, on global and domestic economic policies and principles, a standard agenda item since 2000.
It will also examine reform of the International Monetary Fund.
“With regard to the IMF, it is planned that the work programme contribute towards helping to resolve the multiple challenges that exist in achieving a successful second stage of IMF governance reform,” the document states.”
On the World Bank, it says a range of governance and policy/mandate issues may form part of the discussions.
These could include exploring ways in which the G-20 could contribute to accelerating governance reforms in the institution, and “finding ways to enhance the voice and participation of low-income countries”.
Discussions will also take place on world oil prices, as well as metal and agricultural commodity prices.
“A key policy consideration for financial systems in the case of commodity price shocks is how regulatory frameworks interact with financial markets to prevent or resolve large-scale economic distortions and financial crises,” the programme states.
Local business and politicians will be looking to the meeting for signs of increased commitment on the part of developed countries towards Africa, especially when it comes to access to international markets and support for development on the continent.
The event is taking place against a background of a falling dollar, volatility in world currency markets, and high oil prices.
President Thabo Mbeki is set to address the conference on Sunday morning, and there will be a media briefing on conference outcomes later that day. –Sapa
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